COVID-19 accelerates retail technology innovation.
For chief technology officers working for retailers, that’s quite an understatement.
Many retailers have made major changes to their customers’ experience super fast. Tractor Supply Company, for example, introduced next-day delivery to all stores worldwide within a few weeks. The curbside pick up delivery rollout took them only several days.
Just imagine how much effort went into that project.
All that effort is totally worth it, though. With so many customers considering safety a major factor, retailers that comply are poised to return to pre-pandemic profit levels faster.
But what retail technologies improve customer safety and confidence? Keep reading to find five major ones.
1. Live chat and chatbots
Live chat and chatbots in customer service are two technologies that help retailers connect with more customers through websites.
Sephora, a French beauty retailer, uses a chatbot to help with common support requests and connects customers to agents.
Author’s personal FB account interaction
Live chat helps get almost real-time customer support, which contributes to a positive customer experience. Chatbots offer extra help for the support team, taking over a share of simple repetitive requests like “order delivery update” and “shipping policies.”
Customers like interacting with businesses via live chat and chatbots. There’s no need to visit a retail location or wait on the phone for a support agent. Plus, the whole interaction can be as fast as two minutes.
eCommerce research supports that: Accenture recently found that 42% of customers increased the usage of live chat and chatbots since the start of the COVID-19 pandemic.
That’s why a live chat or a chatbot solution is something that many retailers are either developing or considering buying. Total Retail Magazine, for example, says that chatbots aren’t “just a trend,” but a strategy that will “shape how companies will operate moving forward.”
Related read: 8 Examples of AI in Retail and Advertising
2. Curbside pickup
Many retailers, including Lowe’s and Crate & Barrel, have deployed curbside pickup service within impressive timeframes. The National Retail Federation suggests that most retailers had this service planned for 2023 or even later, but the arrival of the pandemic forced them to act fast.
The mentioned Accenture research also found that 44% of retail customers have chosen to use curbside pickup rather than go to a brick-and-mortar location. To get their orders delivered, customers choose the “Curbside Pickup” option in checkouts (see Crate & Barrel’s description as an example).
Author’s screenshot from https://www.crateandbarrel.com/crate-and-barrel-covid-19-response
So far, thousands of customers have been choosing curbside pickup as a preferred delivery option. This delivery method is very likely to stay relevant after the pandemic, as it offers an easy and simple way to receive orders.
Related read: 4 Best Retail Technology Examples in 2021
3. Augmented reality
Augmented reality is a retail technology that is a super cool addition to an online customer experience. What emerged as a tool to make shopping more fun is now also a great way to allow customers to try products from home.
Some of the best applications of augmented reality technology in retail are:
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Trying on items like clothing, shoes, jewelry, and glasses
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Previewing how furniture products look like in customers’ homes
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Trying on clothing with augmented reality mirrors with built-in menu and customizations
All of these applications are now pretty commonly used. One of the best examples of the application of augmented reality in retail comes from Wanna. This fashion retailer designed a custom app that allows customers to preview how shoes look on their feet.
A customer downloads a special app, chooses a product, and tries it on. The process is super fast, and “virtual” products look very realistic. The app eliminates the need to go to a brick-and-mortar location, too.
Source: Wanna, YouTube
That’s why augmented reality development is now something that many businesses—both large retailers and smaller online stores—are considering as a way to get a competitive advantage.
There are two ways to adopt the augmented reality feature: either develop a custom app or add this functionality to an existing one. Both ways offer the same experience and can greatly improve customer experience.
Related read: AR For e-Commerce as a New Marketing Tool
4. Shopping apps
In-app shopping is not exactly a new way to shop, but it became much more popular because of the pandemic. Accenture suggests that 54% of customers have made orders through a retailer’s app, and most of them are planning to continue doing so.
A mobile app that can help increase retail sales should have a specific range of features to ensure a positive customer experience.
The most important features are:
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Quick registration process. Customers should be able to sign up with their email, phone, and social media in less than one minute. This means that the app should require only necessary information for registration.
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Notifications. Customers should be able to get notifications with updates about sales, discounts, special deals, and other useful information. That’s why a retail app should have a notification feature to send quick messages.
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Multiple payment methods. Credit cards remain the most common online payment method, but there are also Google Pay, PayPal, and numerous other ways. Having at least several payment options available in the app will simplify the shopping process for customers.
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Product reviews and ratings. Product pages in the app should offer the same information as the retailer’s website. This includes product reviews, which are a major trust factor that can encourage customers to buy.
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One-step checkout. Also called guest checkout, it requires minimum information to make the purchase. This is an essential feature considering that 24% of customers walk away mid-purchase because of the mandatory account creation requirement.
The retailers who will implement these features in their shopping apps have a good chance to engage more customers.
The Kroger Co., a popular U.S. retailer, has an app with all these features. The success of such a solution is proved by a 4.8-rating from 899,800 iPhone users and a 4.6 rating from 142,500+ Android users.
A screenshot from the App Store
5. Robots
The retail industry is also tapping new robotic technology that increases work efficiency and automation. Robots can carry out many repetitive tasks in warehouses and stores, and retailers are already involved in developing them.
Recent research by the Retail Innovation Hub found that 73% of retailers see robots as an effective way to improve their businesses. Cleaning robots like this one below, for example, is considered a way to enhance social distancing, help clearing personnel, and speed up cleaning processes.
A cleaning robot in a retail location. Source: ZDNet
Some of the benefits of robots mentioned in the research included:
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Scanning shelves for stockouts
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Checking pricing accuracy
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Delivering products from and back to warehouses
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Enhanced social distancing
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Improved on-shelf inventory availability
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Safer, cleaner in-store customer experience (cleaning robots)
Many retailers are about to start using robots in their daily operations.
ZDNet has recently written that 64% of retailers believed that having a robotics automation strategy in 2021 was very important. Besides, almost 50% of them also confirmed involvement in an in-store robotics technology project within the next 18 months.
Indeed, the unprecedented pace of adopting robotics in retail is another way to both improve process efficiency and address safety requirements.
Retail Technology that Improves Customer Experience: Summary
Innovative technology in retail is booming. These five technologies are the tip of the iceberg, but they make a ton of difference for retailers of all sizes. They also show a technology investment can pay off with increased customer engagement, better reputation, safer customer experience, and more efficient processes.